ServiceNow (NYSE:NOW) Stock Rating Reaffirmed as Buy by BTIG Research

ServiceNow (NYSE:NOW)‘s stock had its “buy” rating reiterated by analysts at BTIG Research in a report released on Monday, Benzinga reports. They presently have a $170.00 target price on the information technology services provider’s stock. BTIG Research’s price objective indicates a potential upside of 22.89% from the stock’s previous close.

A number of other research firms have also recently commented on NOW. JPMorgan Chase & Co. increased their target price on ServiceNow from $145.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, July 23rd. Benchmark reaffirmed a “buy” rating on shares of ServiceNow in a research report on Friday, July 17th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. Oppenheimer reissued an “outperform” rating and set a $140.00 price objective (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Finally, Weiss Ratings upgraded shares of ServiceNow from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $149.20.

ServiceNow Stock Performance

ServiceNow stock opened at $138.33 on Monday. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $143.04 billion, a P/E ratio of 73.54, a PEG ratio of 2.58 and a beta of 0.99. The stock’s 50 day moving average is $133.78 and its 200 day moving average is $112.87. ServiceNow has a twelve month low of $81.24 and a twelve month high of $192.97.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The company had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The firm’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same quarter last year, the company earned $0.81 EPS. On average, equities research analysts predict that ServiceNow will post 2.22 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the sale, the director owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jacqueline Canney sold 7,847 shares of the business’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the transaction, the insider owned 30,042 shares of the company’s stock, valued at $4,145,796. This represents a 20.71% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,081 shares of company stock worth $1,937,904. Insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Large investors have recently bought and sold shares of the business. Cornerstone Financial Management LLC increased its position in ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 107 shares during the last quarter. CrossGen Wealth LLC bought a new stake in shares of ServiceNow in the 1st quarter worth about $29,000. Marquette Asset Management LLC lifted its holdings in shares of ServiceNow by 75.0% in the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock worth $30,000 after acquiring an additional 129 shares during the last quarter. Kilter Group LLC purchased a new position in shares of ServiceNow during the 2nd quarter worth about $31,000. Finally, Howard Hughes Medical Institute boosted its stake in shares of ServiceNow by 404.5% during the 4th quarter. Howard Hughes Medical Institute now owns 222 shares of the information technology services provider’s stock worth $34,000 after purchasing an additional 178 shares during the period. 87.18% of the stock is currently owned by institutional investors.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analysts remain optimistic ahead of third-quarter results. Oppenheimer said channel checks point to a favorable Q3 outcome, while another analyst identified ServiceNow as a top software pick with potential revenue acceleration into fiscal 2027 as AI, security and usage-based products expand. ServiceNow Positioned to Deliver Favorable Business Outcome in Q3 Analyst Calls ServiceNow a Top Software Pick
• Positive Sentiment: Royal Bank of Canada raised its ServiceNow price target to $176 from $130 and maintained an Outperform rating. BTIG also reaffirmed its Buy rating with a $170 target, providing evidence of continued Wall Street confidence. ServiceNow Stock Gets Price Target Increase from Royal Bank of Canada
• Positive Sentiment: ServiceNow’s AI business continues to gain traction, with enterprise demand, AI-powered workflows and products such as Flow viewed as potential sources of a new billion-dollar growth engine. The company continues to report revenue growth above 20%, including 24% growth in its latest reported quarter. Prediction: ServiceNow Could Be Building Its Next Billion-Dollar Growth Engine
• Neutral Sentiment: AI-agent startup Decagon reportedly held early acquisition discussions with ServiceNow and other companies. Any deal could strengthen ServiceNow’s AI capabilities, but the talks are preliminary and no transaction has been announced. AI agent company Decagon held early M&A talks with ServiceNow
• Negative Sentiment: Valuation remains the central risk. With a market value near $139 billion, investors increasingly need ServiceNow’s strong AI-led growth to produce substantially higher free cash flow before the shares appear inexpensive. ServiceNow Is Growing 24%, but Can Cash Flow Justify Its Valuation?
• Negative Sentiment: Despite 24% revenue growth, earnings reportedly fell 22.6% as ServiceNow increased sales and engineering spending to support AI and workflow expansion. That investment may weigh on near-term margins and raise questions about where the revenue growth is translating into profit. ServiceNow Grew Revenue 24% While Earnings Fell
• Negative Sentiment: Broader technology stocks weakened late in the session, creating an additional sector-level headwind for NOW shares. Sector Update: Tech Stocks Softer Late Afternoon

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.